Colegio de San Lorenzo de Pampanga, Inc.

Senior High School Department

AY 2022 – 2023

Understanding the Market

WHAT IS MARKET?

A market is a place where parties can gather to facilitate the exchange of goods and services. The parties
involved are usually buyers and sellers.

Markets are composed of the following:

1.Buyers
2.Sellers
3.Institutions and Infrastructure
4.Suppliers Importers Wholesalers

TYPES OF MARKET

1. Physical Markets
2. Non-Physical Markets/Virtual Market
3.Auction Market
4. Black Market
5. Financial Market

1. Physical Markets - is a set up where buyers can physically meet the sellers and purchase the desired
merchandise from them in exchange of money.

2. Non-Physical Markets/Virtual markets - buyers purchase goods and services through internet.

3. Auction Market - in an auction market the seller sells his goods to one who is the highest bidder.

4. Black Market - a black market is a setup where illegal goods like drugs and weapons are sold.

5. Financial Market - market dealing with the exchange of liquid assets (money) is called a financial
market.

The Competitors - a competitor is any person or entity which is a rival against another.

PRODUCTS AND SERVICES AVAILABLE IN THE MARKET

Thinking before deciding what to sell or what services to offer the consumer is the key to a successful
entrepreneurship.

Validating Costumers concern through Interview, Focused Group Discussion and Survey

ENTREPRENEURSHIP
MR. JERICHO PALAO
Colegio de San Lorenzo de Pampanga, Inc.
Senior High School Department
AY 2022 – 2023

Analyze the Market

1. “Marketplace needs” is a marketing concept that relates to the functional or emotional needs or
desires of a target market.

2. In starting a business bear in mind that there should be a customer in need of your product. If it
doesn't, you may end up developing a plan, a product or solution that really doesn’t have a problem to
solve which further means that there is no market to buy your product.

3. Businesses exist to give solution to customer’s problems and meet their needs better than the
competitors in the marketplace for a reasonable price.

4. As an aspiring entrepreneur, you want to identify what the market or consumers say is a problem and
not what you believe is the problem. Do not define your business around the product or service.
Instead, define the business around the problem or customer’s need.

5. Maslow’s hierarchy of needs is a motivational theory in psychology comprising a five-tier model of

human needs, often depicted as hierarchical levels within a pyramid.

6. Needs lower down in the hierarchy must be satisfied before individuals can attend to needs higher up.
From the bottom of the hierarchy upwards, the needs are: physiological, safety, love and belonging,
esteem, and self-actualization.

A successful business is about: looking and grabbing opportunities when they appear, not just staring at
opportunities but actually taking advantage of it and seeing problems as opportunities to start and grow
a business.

ENTREPRENEURSHIP
MR. JERICHO PALAO
Colegio de San Lorenzo de Pampanga, Inc.
Senior High School Department
AY 2022 – 2023

Determine the Possible Products and Service that will Meet the Need

The critical phase in the entrepreneurial process is actualizing the entrepreneurial mindset after opportunity recognition;
i.e. when the business idea is put into a final form where the details are worked out and it is transformed into something of
value such as a new product or service.
It is important that the entrepreneur exploit the opportunity by starting a business on the right path, with a foundation solid
enough to enable it to grow, succeed and become sustainable.

Planning the Business

Planning is getting into the details of what the organizational goals and how to attain

them. In manufacturing business setting, it involves planning for the:

1. Product-involves determining:
 How long the product meets customer's needs
 How long it takes for the product to make and to be marketed, and
 The total cost to the customer

2. Process – deals with determining the specific technologies, procedures and systems required to produce products or
create services.

3. Facility Location – deals with the identification of the place where the manufacturing process will be located and
services will be offered. The criteria that should serve as guide in facility location planning are:

 Proximity or appropriate distance to target customers

 Business climate and the market environment
 Total costing
 Transportation facilities and infrastructure
 Quality of labor
 Supplies
 Location of company’s other facilities
 Peace and order condition
 Government laws, rules and regulations
 Environmental regulations
 Host community
 Competitive advantage

4. Facility Lay-out – involves the placement of departments, workstations, machines and inventory storage within the
factory. The objective of facility lay-out planning is to ensure smooth workflow. The factors to considers are:
 Objectives and purposes of the system in increasing productivity
 Demand for product and service
 Number and volume of operations
 Space availability

5. Jobs Design – function of specifying work assignments of each employee and/or group in an organization. The
objective is to develop job structures that meet the requirements of organizations. Job design satisfies employees personal
and individual requirements. The areas to considers are:

 Tasks to be done
 Qualification of worker
 Physical location
 Performance measurement
 Motivation
 Working time
 Training
 Reason for hiring

ENTREPRENEURSHIP
MR. JERICHO PALAO
Colegio de San Lorenzo de Pampanga, Inc.
Senior High School Department
AY 2022 – 2023

Knowing your products and services

Product knowledge is an essential sales skill. Understanding your products’ features allows you to present their benefits
accurately and persuasively. Customers respond to enthusiastic sales staff who are passionate about their products and
eager to share the benefits with them.

Get to know your products or services

Customers are more likely to trust sales people who show confidence in themselves and what they are selling. You can
build this confidence by increasing your knowledge of your products or services.
Use conventional and creative sources of information to learn about your products or services, including:

 Your own experiences using the products

 product literature such as brochures and catalogues
 online forums
 feedback from customers
 trade and industry publication
 internal sales records
 your team members
 Visits to manufacturers
 Sales training programs
 competitor information.

Be honest about shortcomings

If your product or service has some shortcomings in certain situations, be honest about them with your customers. Let
them know early on if you don’t think your product or service is right for them and they will be more inclined to trust you
when they need something in the future.

Turn product features into benefits

As you engage customers, you can use your knowledge to lead your customer through the sales process, and make their
experience an enjoyable one that they’ll want to revisit. Successful salespeople know all of their products’ features and
skillfully turn these features into benefits for their customers.

To practice this skill, list your product’s features, potential benefits, and all information up front for your customers.
Consider how you can communicate the potential benefits, for example:

Its purpose- it will meet your needs and save you time and money
How it works- it is easy to use so you won't be frustrated by complicated features
How it is developed or manufactured- it supports local industry and helps the environment
How it is checked for quality- you can be confident it will work
How it is delivered- you don’t have to worry about delivery we organize that for you
How it is maintained and serviced- You can be assured that if it needs maintenance, we will take care of it for you
How long it is likely to last (including any warranties)- You can be confident that if it has any problems, we will fix it or
replace it while under warranty
Its price- You can comfortably afford it
How it compares to similar products the business offers- You can base your decision on the good reputation our business
has earned for selling other well-regarded products
How it compares products to competitors-You are receiving quality and value for money
Its strengths and limitations (the capability of the product to deliver benefits to clients)- You are buying a product that is
well-matched to your particular needs.
Other Products That Might Complement it- Buying this companion product will allow you to meet the needs of your
entire household

ENTREPRENEURSHIP
MR. JERICHO PALAO